Jefferies Cuts Price Target on Bemis (BMS), Volumes Continue to Fall

Jefferies is maintaining its Hold rating on shares of Bemis (NYSE: BMS) while cutting its price target from $37 to $35.

The firm is forecasting that volumes will fall 2-3 percent over the second half due to weakness in the U.S., as well as a slowdown in Latin America from some share leakage and weaker consumer spending.

Pricing will increase over the next few quarters which will help cushion the price cost spread. The company is anticipating a slower recovery due to longer pass throughs from the Alcan business, as well as longer lags for specialty resin.

Jefferies is lowering its 2011 EPS estimate from $2.17 to $2.08 and its 2012 estimate from $2.50 to $2.39.

An analyst at the firm comments, "BMS's PSM business held up reasonably well, with volumes down modestly, tracking much better than the market leader, with the company having less exposure to roll label and a larger presence in graphics and technical."

For more ratings news on Bemis click here and for the rating history of Bemis click here.

Shares of Bemis closed at $32.14 yesterday.

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